RLA Global’s Wellness Real Estate Report 2024 Shows

 Wellness hotels showed a positive growth trend globally in 2023, although performances
were uneven across different wellness categories and hotel asset classes.
 The Wellness Real Estate Report 2024 has a new addition to compare the performances of
Luxury, Upper Upscale and Upscale hotels with Major, Minor and No Wellness offerings.
 Luxury hotels with Major Wellness offerings led in terms of Total Revenue Per Available
Room, achieving a TRevPAR three times that of Upper Upscale hotels in 2023.
 But Upper Upscale properties were the best performers in terms of ADR and TRevPAR
growth in all three categories of wellness, outperforming both Luxury and Upscale hotels.
 F&B revenues were affected by beverage and room service sales falling at Major Wellness
and Minor Wellness hotels, indicating changing customer habits.

Dubai, UAE June 13 th , 2024 – Hotels with wellness offerings posted healthy TRevPAR growth in 2023, with Minor Wellness properties – those generating less than $1mn or 10% of total revenue from
wellness and leisure – standing out with a 26% average increase in average TRevPAR from 2022,
hospitality advisor RLA Global said in its latest Wellness Real Estate Report, published in partnership
with P&L benchmarking firm HotStats for the fifth consecutive year in 2024.

“There was a positive growth trend at hotels with wellness offerings in conjunction with all main year-
on-year KPIs, including ADR, RevPAR, TRevPAR and occupancy. Minor Wellness properties
demonstrated great flexibility in optimizing operating expenses, contributing to their bottom line. But
performances also indicated a fragmented hotel wellness market that investors should pay close
attention to,” Roger A. Allen, Group CEO of RLA Global, said.

“Wellness is certainly a guest expectation across the board and guests are willing to spend more
money where they can, in areas, such as wellness. […] Investors need to be able to get the right
approach for the right market with the right asset,” Michael Grove, CEO of HotStats, said.
Comparing results in the Luxury, Upper Upscale and Upscale hotel classes in the Wellness Real Estate
Report 2024 for the first time delivered interesting findings. Luxury properties with Major Wellness
offerings generated three times more TRevPAR compared to Upper Upscale hotels but were behind
Upper Upscale in year-on-year TRevPAR growth and saw a 4% decline in ADR. Upper Upscale
properties delivered the best performance in terms of ADR and TRevPAR growth in the Major, Minor
and No Wellness category.

“People build and own hotels for very different reasons. […] If it’s to generate a return, the report
clearly highlights that most [investors] would be better off having an upper upscale property with
some wellness amenities rather than going completely to the high-end of the spectrum,” Rachael
Rothman, Head of Hotels Research and Data Analytics at CBRE said.
“The emphasis in luxury is about protecting the experience first and foremost and sometimes that
means sacrificing other things that might be more profitable. That would interfere with being able to
deliver to your guests that very high-end, very exclusive and very personalized experience,” Jeremy
McCarthy, Group Director of Spa & Wellness at Mandarin Oriental, said.

The Wellness Real Estate Report 2024 also assesses revenue generation and profitability in various
departmental operations, which also reveals notable trends at wellness hotels. Average F&B Revenue
Per Occupied Room, for example, rose slightly in all three categories last year, mostly driven by
restaurant spend. But beverage sales were down at Major and Minor Wellness hotels, which also saw
their room service revenue fall by 13% and 12% in 2023, respectively.
“The declining bar and room service revenues in city center hotels reflects the latest trends of guests
becoming more health-conscious and drinking less alcohol, while food delivery apps are providing
guests with more compelling and cheaper options than the hotel offering,” Alex Santamaria, Founder
of Aware Hospitality, said.

The Wellness Real Estate Report 2024 discusses key industry trends that we believe are here to stay.
These include customers increasingly fitting longevity needs into their lifestyle, the rising influence of
wellness on branded residences and artificial intelligence becoming a transformative tool.
The annual Wellness Real Estate Report and its mid-year updates evaluate average hotel
performance based on HotStats data covering over 11,000 Major, Minor and No Wellness hotels of
different classes worldwide. Processing property-level KPI results, such as ADR, occupancy rates,
TRevPAR, GOPPAR and GOP, the report and its updates present how wellness contributes to hotel
revenue flows and operating costs, and what effects it has on margins and overall profits.

DOWNLOAD THE FULL 2024 REPORT HERE: www.wellnessrealestatereport.com FOR MORE

RLA Global is an award-winning, recognized global advisory to investors, owners, developers, and
management companies. Specialized in hospitality, leisure, recreation, wellbeing and health tourism
related to hotels, resorts, residential, mixed-use, healthcare, active living communities, and
destination tourism developments. RLA Global works closely with the public and private sectors in the
Americas, Europe, the Middle East, and Africa to provide conceptual planning, feasibility and financial
analysis, and asset management of complex properties such as resorts & hotels, health-wellness-
medical & spa, leisure experiential and life-enhancing destinations. rlaglobal.com

HotStats is a global data company that provides specialized performance analysis and benchmarking
platform for hotels around the world. It collects financial and operational data from over 11,000
properties globally to provide owners, operators, and investors with valuable insights into the
financial performance of their properties against their competitors, an invaluable resource for
evaluating investment opportunities and weighing options for investors. www.hotstats.com